Empire State Development grant keeps GE on LI

The Empire State Development Corp.’s board of directors approved funding for job creation and business retention to the tune of $11 million across New York state on Thursday – more than half of which will be used to keep an aviation stalwart in Suffolk County.

With the troubling economy, GE Aviation Systems, a subsidiary of the General Electric Co., reviewed its sites to ensure business competitiveness. Following the review, the company was considering closing its Bohemia facility and moving operations to Ohio and Michigan, where it already has a presence. Rather than following through with its relocation plans, however, GE Aviation went to the ESDC, asking for financial assistance. In response, GE Aviation Systems received a grant worth up to $6.35 million to be used for a portion of the cost of working capital expenses. As a result, rather than closing its doors, GE Aviation Systems will instead retain 200 jobs and create 55 new ones.

ESDC’s funding for GE Aviation Systems represented a sizable chunk of the $11 million it committed to four companies and two municipal projects. Other companies receiving money include Regeneron Pharmaceuticals and Towers Watson in Westchester County, and Ashland Advanced Materials in Niagara County. In total, the funding is supposed to create 130 new jobs and retain 905 existing ones across New York.

GE Aviation Systems produces large and small jet engines for commercial and military aircraft manufactured by companies such as Boeing, Lockheed Martin, Northrop Grumman, Raytheon and the U.S. government.

One comment

Oh this is JUST great! Now we have to bribe multi-billion dollar companies to stay on LI. And one that shirks taxes on top of everything else. I understand the need to retain jobs…but GE really does know how to work the system. Long Island is doomed…Will the last person out please remember to turn out the lights?